Cramer's 'Mad Money' Recap: Bears Have No Place to Hide

Cramer says the Treasury's banking stress tests gave the bulls more ammunition.

The market is still trending higher because the bears are losing their places to hide and the bulls are just winning, Jim Cramer told the viewers of his "Mad Money" TV show Friday.

Cramer said today was another day where the bears and shorts lost another reason to be negative on the markets.

The bears thought the Treasury Department's banking stress test was a win-win, he said. That's because they believed the tests could've been too tough and the government would've been forced to gobble them all up.

On the other hand, they reasoned the tests could've been too easy, and the whole thing would've been called a sham. Yet in the end, the Treasury stress test was exactly what the bear didn't want, namely a statement that everyone needs more capital, and more time for the banks to find it.

With stress tests now a non-issue, the bears have only valuations to scare off investors with, said Cramer. However, he said, the only problem with that is that valuation is in the eye of the beholder.

In the battle of hedge funds versus mutual funds, the mutual funds are winning, said Cramer. These funds need to get fully invested and are buying stocks faster than the hedge funds can short them.